Visa Nears Deal to Buy Fintech Startup Plaid
January 13 2020 - 4:31PM
Dow Jones News
By Cara Lombardo and AnnaMaria Andriotis
Visa Inc. is nearing a deal to buy privately held
financial-technology firm Plaid Inc., according to people familiar
with the matter.
A deal between the companies could be announced this week, the
people said, though it is still possible talks could fall through.
Details of the expected transaction including the price couldn't be
learned, but Plaid was valued at roughly $2.65 billion in a 2018
funding round.
Plaid's software can access customers' bank-account data and
aggregate it for financial-services providers. The expected
acquisition could create a platform that allows money to move
between bank accounts, and competes against money-transfer services
like Zelle and PayPal Holdings Inc.'s Venmo.
The acquisition could help Visa tap into the trillions of
dollars sent by wire transfer or bank account globally each year
and expand the ways the card giant helps firms send and receive
money through bank accounts.
Visa last year acquired control of Earthport, which provides
cross-border payment services to banks and businesses.
Both Visa and its rival Mastercard Inc. had invested in Plaid as
part of the 2018 funding round, according to S&P Capital
IQ.
Write to Cara Lombardo at cara.lombardo@wsj.com and AnnaMaria
Andriotis at annamaria.andriotis@wsj.com
(END) Dow Jones Newswires
January 13, 2020 16:16 ET (21:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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